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Enabling brands to attract people.

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© Brand Trust GmbH

What is a brand and how do I boost my brand to No.1?

ECTA Conference 2014, May 16th 2014, Montreux Switzerland

Klaus-Dieter Koch, Managing Partner, Brand Trust

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Who we are?

Brand:Trust

is the first brand strategy

consultancy out of the

German speaking area.

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We enable our customers to look onto their brands with fresh eyes to discover unlocked business opportunities.

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© 2012 Brand:Trust GmbH 5

Pharmaceuticals, Healthcare & MedTech

Ecology & Organics

Financial & Professional Services

Fast Moving Consumer GoodsChemicals, Energy, Materials

Lifestyle & Luxury Retail, Mail Order & E-Commerce

Technology & Automotive Construction & Real EstatePublic Sector, Destination, Tourism & Logistics

11 Industries

Telecoms, IT, Media, Entertainment & Security Pharmaceuticals, Healthcare & MedTech

Ecology & Organics

Financial & Professional Services

Fast Moving Consumer GoodsChemicals, Energy, Materials

Lifestyle & Luxury Retail, Mail Order & E-Commerce

Technology & Automotive Construction & Real EstatePublic Sector, Destination, Tourism & Logistics

Telecoms, IT, Media, Entertainment & Security

11Industries

Brand Trust Industry Competence Centers

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Our publications on brandmanagement:

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Value Branding The first book on management for technology brands.

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Too much communication out there...

3.000 Brand exposures

per day

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Abundance displaces deficit.

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Every buying decision is based on two levels:

Brand Image

Brand Capital

Logo

Brand Name

Communication

Brand Design

Marketing

Brand Touchpoints

Brand Core

Peak Performance

Brand Positioning

Brand Rules

Breeding Grounds

Fans

Brand Portfolio

Brand Programs

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The relation of wish ...

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... and reality.

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Pepsi vs. Coca Cola

2008 1898 1998 1905 1940 1950 1962 1973 1991

1885 2008

Brand Value 2010: USD 67,983 bn

Brand Value 2010: USD 12,752 bn

Source: Interbrand

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The technological advantage is not longer big enough!

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5,500 Number of suppliers of Volkswagen Group

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Are you only cheap or incomparable?

http://www.auto-motor-und-sport.de/news/bmw-halbiert-zulieferer-zahl-fuer-7er-produktion-695710.html

„We just want to depend on a few, reliable

system partners.“ Wolfgang Stadtler – Manager BMW Plant Dingolfing

500 250

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1. Professionelle Einkäufer kaufen Sicherheit

The goal of professional buyers is to make their purchasing as easy and secure as possible!

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Simple and secure?

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Data sheets communicate function rather than value!

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Supplier

View

Customer

View

Very important

9,0–10,0

important

8,0–8,99

Please tell me how important these

requirements are in your opinion.

(10 =very important, 1 = unimportant)

Performance

Reliability

Quality

Innovation

Flexi- bility

Customer Service

Customer Relevance

Efficiency

Specialisation

Long-term Relationship

Compe- tence

Credibility

Warranty

Sustainability

!

Personal Contact

Sellers underestimate the need for security

Source: Brand Trust Study

Base: total suppliers = 51; total customers = 150

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Every buying decision is based on two levels:

Brand Image

Brand Capital

Logo

Brand Name

Communication

Brand Design

Marketing

Brand Touchpoints

Brand Core

Peak Performance

Brand Positioning

Brand Rules

Breeding Grounds

Fans

Brand Portfolio

Brand Programs

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What is the difference between brand management and marketing?

Saving

Energy

Using

Energy

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Brand Energy:

Knowledge

Experiences

Prejudices

Preference

Relationship Brand Management

Identify, condense and

express peak

performances

Pricing,

communications,

sales, distribution,

product management

Marketing

What is the difference between brand management and marketing?

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The difference between managed and unmanaged brands:

A brand is the condensed expression

of corporate peak performances.

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No.1 ? No. 1

No. 2

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The 188th highest mountain of the world…

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…or the highest mountain outside of Asia.

Aconcagua, 6,962m

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The likelihood of purchase of the No.1 brand is 7 times higher than that of an average brand

Source: Millward Brown, Beyond Trust: Engaging Consumers in the Post-Recesssion World

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No. 1 Brand Average Brand

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The loyalty of customers toward the No.1 brand is 10 times higher than toward an average brand.

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No. 1 Brand Average Brand

Source: Millward Brown, Beyond Trust: Engaging Consumers in the Post-Recesssion World

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SAFETY

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Innovation

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Tough

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How to build strong brands?

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How is a brand built?

I know you! I want you!

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How successful is your brand?

Awareness

0 1 2 3 4 5 6 7 8 9 10

Attractiveness

Low awareness High attractiveness In Brand Sector

High awareness High attractiveness Star Brand Sector

Low awareness Low attractiveness No Brand Sector

High awareness Low attractiveness Out Brand Sector

AA

A

BBB

BB

B

CCC

CC

C

D

O

AAA

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Where do you earn money with your brand?

Awareness

0 1 2 3 4 5 6 7 8 9 10

No Brand Out Brand

AA

A

BBB

BB

B

CCC

CC

C

D

O

AAA

In Brand Star Brand

Money

Attractiveness

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Brands do not leave one single touch point to chance!

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B2B companys have lots of chances to increase their value with brands (PWC 2012)

Quelle:Pförtsch/Schmid 05, p. 2; PWC 09 &12; Roland Berger 12; KPMG 11; E&Y 10; Biesalski & Company, Institut für Wirtschaftsprüfung (IDW)

Consumer

Goods

Service firms B2B B2C Markt

Value creation of brands*

Ø *50%

Company value

Brand value

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Brand focused companies realize 37,1% higher share price compared to S&P 500. BRANDZ Portfolio vs. S&P 500 (April 06 – Mai 12)

Quelle: Millward Brown 12; Börseonline 13; Handelsblatt 12; University St. Gallen (HSG) 10

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Source: Booz Allen Hamilton and Wolff Olins European survey among Marketing and Sales Officers, 8/2004; PlEON Kothes Klewes; *operativer Gewinn

82% of brand centered corporations are earning better results*

than comparable corporations in their industry. Brand-centered

corporations

Other corporations

Above average results

Average results

18%

56% 40% 4%

82%

Below average results

Brand-centered corporations are more profitable.*

Source: Booz Allen Hamilton and Wolff Olins European survey among Marketing and Sales Officers, 8/2004; PlEON Kothes Klewes; *operative profit

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Do you believe that the strength of your B2B brand has a positive effect on your business?

Sales and marketing trust strong B2B brands!

Machine industry

0

Total

Automotive-suppliers

Chemical

82

94

65

88

20 40 60 80 100

Base:S

ale

s t

ota

l =

51

; A

uto

motive

= 1

7;

C

hem

ical =

17

; M

achin

e ind

ustr

y =

17

in %

Source: Brand Trust Study

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Brands are what makes technology valuable!

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Enabling brands to attract

people.

Thank you! www.brand-trust.de